Cyberattacks are on the rise. In addition to hacking, managed service providers and their clients must now be on guard against evolving cyber-risks, including ransomware is becoming more prevalent. In 2017, ransomware payments totaled about $2 billion, which was about twice the 2016 figure. As Managed Service Providers (MSPs) provide management of IT systems, they may need to include proactive defense against cyberattacks to protect their clients and reduce their own liability.
How Ransomware Works.
Understanding how ransomware works is key to stopping it. An entity gains access to a user’s computer system. The user’s data is encrypted, rendering it unusable and typically unrecoverable without an encryption key. To regain access, the user pays ransom to the entity that launched the attack and, hopefully, regains access to their data.
What Can MSPs Do to Protect Clients?
The best defense against ransomware is preventing unauthorized access to your systems. Make sure your clients know what suspicious activity looks like. For instance, emails with attachments are often used to deliver and spread ransomware. Knowing when to click and not to could prevent some cyberattacks.
Teach your clients what a secure website looks like. People who understand the warning signs may be less likely to enter websites that could threaten your company’s data.
Provide security and technology to protect against malware. Set up computer networks that maximize security features and provide layers of protection.
Always back up data and make sure clients understand the important of backing up also. Automated backups may provide the most efficient way to keep backups up to date.
What About Protection for MSPs?
Make sure you’ve done everything you can to protect clients, including educating them. Consider buying cyber-liability coverage in addition to your E&O policies. And make sure your master service agreements cover cybersecurity issues.
Concerned About Your Liability?
Do your master service agreements or other contracts need the attention of an experienced business attorney? Contact Virtus Law at 612.888.1000 or send us an email at firstname.lastname@example.org. Our main office is in Minneapolis, Minnesota. Other offices: Edina, Mendota Heights, and Red Wing.